Every city is fascinated by the concept of hyper connectivity. With the explosive growth in smartphone sales, varied internet packs offered by network providers and internet hotspots in public spaces, the concept appears to be giving people access to a smarter lifestyle.
More so, hyper connectivity has been the main influence driving the blazing demand for quality content anytime and anywhere. And as this digital shift gains full momentum, network providers rolling out 4G (also known as LTE) services couldn’t have timed it better.
Already touted as a game-changer, 4G has brought a breath of fresh air to a market swarming with digital citizens troubled with increasing 3G woes. This is especially true when it comes to the “always-on” millennials, who are aggressively migrating to video-on-demand (VOD) platforms seeking premium content.
With its limited bandwidth and poor video quality support, 3G couldn’t live up to the expectations of the mobile-first generation – who want to watch not near-HD but HD quality videos on their pixel-packed high-resolution mobile screens.
On the other hand, 4G network rollouts have been making headlines, which cite improved internet speed for the new-age denizen. This has also resulted in a significant increase in mobile consumption of videos, giving VOD platforms a favorable opportunity to optimize network consumption, drive high-quality video content and capitalize on consumer demand.
If you go by global statistics, Reuters has stated that video is expected to grow by 14 times within five years and account for 70 per cent of mobile network traffic as mobile devices upgrade to LTE-advanced 4G rollouts. In addition, Cisco in its “The Zettabyte Era – Trends & Analysis” report predicts VOD traffic to double by 2020 and become equivalent to 7.2 billion DVDs per month.
This draws attention to how 4G can be aptly leveraged by VOD platforms and the telecom sector to improve their reach and sustain consumer loyalty, which is usually hampered by poor network quality, inefficient bandwidth and low transfer rates.
The 4G LTE network is 10 times faster as compared to 3G and offers internet speeds of at least 200kbps. Thus, 4G has the capability to create new revenue generating opportunities that can be extensively maximized by VOD platforms and the telecom sector.
Achieving this objective would require VOD platforms and the telecom sector to resolve the age old debate around data consumption. High data consumption has become a persistent concern among people who prefer viewing videos on their mobile devices.
In the UAE, according to the Global Video Insights (GVI) Report by Vuclip, nearly 89 per cent of people use their smartphones as a primary device for video consumption and 47 per cent of viewers state provision of high-definition video quality by a VOD platform as a requisite.
Consumers seek exciting content to be viewed primarily for casual viewing on their mobile device. They expect delivery of highest quality of video content with a terrific buffer-free experience. Hence, from a data standpoint, for a market dominated by the mobile-first generation, telcos need to continue to make data affordable without compromising the quality of network connectivity.
This will allow consumers to enjoy the network without being constrained by data speeds. Likewise, VOD platforms will have to leverage their patented technologies to optimize network strengths and provide the right video quality for the right mobile screen.
Only then can VOD platforms provide a buffer-free viewing experience sans patchy video streaming. To add to this, people who prefer mobile as their screen of choice, irrespective of which internet pack they use, need to be mindful of data abuse and understanding high-speed network doesn’t mean abundant/unlimited network.
In the end, the takeaway is that aggressive 4G LTE roll out is a win-win for the entire mobile ecosystem. First, the telecom sector gets an opportunity to capitalize on the significantly growing consumer demand and provide a super experience to turn them to loyal users with higher life time value.
Second, VOD platforms can bring more quality and original content to drive up demand and mobile content consumption. Thirdly, consumers get to enjoy what they prefer and seek which is abundant mobile video viewing.
4G has started to enable the audience to “pull” video content as opposed to pushing the content to them. In line with its progression, VOD platforms and network providers are looking forward to the transformation 4G could bring in the near future.
The writer is regional Director at Vuclip.
